1. Importance of feed in livestock sector
The success of livestock farming is largely dependent on the continuous supply of good quality nutritious feeds at competitive price. Feed alone constitute about 60-70 per cent of total cost of production of livestock products. Therefore, it needs more attention though other factors are also important for remunerative return from livestock enterprises. The farmers used to feed the crop residues to the cattle and buffaloes, however, sheep and goat are normally maintained on grazing/browsing with supplementary feeding of broken grains/other bypoducts. Therefore, feeding of balanced concentrate feed to these animals was not common, because of low productivity and unremunerative prices for the livestock products. The improved poultry is fed only with concentrated feed. The requirement of food of animal origin like milk, meat and eggs is increasing at a faster rate due to increased awareness about the significance of protective proteins for the maintenance of human health. The farmers realised the importance and started rearing good quality and high productive animals/birds under stall fed conditions.
2. Scope for feed industry
2.1 With the increased demand for livestock products for domestic consumption as well as export, the farmers realised maintaining of quality animals with proper feeding and management. The proportion of crossbred animals or improved strains of birds increased over the years. This has necessitated higher demand for balanced concentrate feed. Presently, various milk unions, poultry corporations/ federations and private companies are supplying both cattle and poultry feed of different qualities and forms (mash/ pellets/ crumbles) to the farmers. Large size poultry farm/dairy farm owners, hatcheries and cooperative poultry units are normally manufacturing their own feed by installing the necessary plant and machinery on the farm. Some of the farmers are still feeding broken grains, cakes, gur, salt,etc. to dairy animals by mixing at home.
2.2 The compounded feed manufactured by CLFMA (Compounded Livestock Feed Manufacturers Association) members during 1998-99 was 3.16 million tonnes. The feed production under organised sector since 1965 is given in Annexure-I. The demand-supply position for various feeds is given in Annexure - II. The present supply is only half of the total requirement. Moreover, the demand for small ruminants (goat and sheep) under stall fed conditions, rabbits and pigs is not estimated. Considering their requirements, the gap is much more.
2.3 The feed production could not keep pace with the growth in various species of farm animals and poultry. To meet the growing demand of processed and complete feeds for different class of animals, the unconventional feeds should also be used in the rations through proper processing for removal of anti nutritional factors. Thus, it indicates that there is a good scope for setting up feed processing plants of different capacities for production of various quality feeds.
3. Financial assistance for feed industry
3.1 NABARD is an apex institution for all matters relating to policy, planning and operations in the field of agricultural credit. It serves as a apex refinancing agency for the institutions providing investment and production credit. It promotes development through formulation and appraisal of projects through a well organised Technical Services Department at HO and Technical Cells at each of the ROs.
3.2 Loans from banks with refinance facility from NABARD are available for starting feed processing plants. For obtaining the bank loan, the entrepreneurs/companies should apply to the nearest branch of the commercial or cooperative or regional rural banks in their area in the prescribed application form which is available in the branches of financing banks. The entrepreneurs are also required to submit a detailed project report for which they can also take the help or guidance of the technical officers attached to the bank.
3.3 For feed processing plant with very large outlay, a detailed project reports will have to be prepared. The model format for formulation of bankable project is given in para 4. Banks provide financial assistance for the following purposes.
(a) Construction of factory building, godowns for raw materials as well as for finished products, office, canteen, generator room, essential quarters,etc.
(b) Purchase of equipments such as grinder, feed mixer, pelletizer, elevators, feed packing units, etc.
(c) Miscellaneous equipments such as transformer, generators, weighing scales vehicles, etc.
(d) Margin money for working capital requirement for one cycle of operation.
The cost of land is not considered for loan. However, if land is purchased for establishing a feed processing plant, land cost can be treated as party's margin money upto a maximum of 10 per cent of the total cost of project.
3.4. Scrutiny of Scheme by the Bank:
After the scheme is submitted to the Bank, it is examined for technical feasibility and economic viability.
(a) Technical Feasibility: This would briefly include:
(i) Availability of raw material such as grains, brans, oil cakes, mineral mixture, molasses, fish meal, vitamins, etc.
(ii) Feed formulation and technical norms
(iii) Infrastructure available for feed testing, procurement of raw material, marketing of different feeds, experience of the entrepreneur.
(b) Financial Viability: This would briefly cover:
(i) Project outlay, sources of funds and loan requirement
(ii) Raw material cost, expenses on fuel, labour, transport commission to be paid and other overheads
(iii) Output costs i.e. quantity and sale price of different feeds, number and sale price of empty gunny bags.
(iv) Income Expenditure statement and annual gross surplus
(v) Cash flow analysis - Benefit Cost Ratio(BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR)
(vi) Repayment Schedule i.e. Repayment of principal loan amount and interest
Other documents such as loan application forms, security aspects, margin money requirements,etc. are also examined. A field visit to scheme area is undertaken for conducting techno economic feasibility study for appraisal of the scheme.
3.6. Sanction of Bank loan and its disbursement:
After ensuring its technical feasibility and financial viability, the scheme is sanctioned by the Bank. The loan is disbursed in two or three stages against construction of various civil structures, purchase of plant and machinery, miscellaneous fixed assets and margin money for working capital requirements. Constant follow up and supervision of the scheme is done by the Bank.
3.7. Lending terms
i) Unit Cost:
The Unit Cost depends upon the capacity of the feed mixing unit, type of feeds to be manufactured and also the infrastructure required.
ii) Margin Money:
In case if the feed mixing unit is integral part of the commercial poultry or dairy scheme, the down payment is based on the category of beneficiary. However, in respect of feed processing plant of larger size, the margin money is normally 25 per cent of the total cost of the project.
iii) Interest Rate:
It depends upon the RBI guidelines and also the individual banks. The present rate of interest for Rs.2.00 lakhs and above is linked to primary lending rates of banks which varies with the type of investment, beneficiary and also the credit rating.
iv) Security:
Security will be as per RBI guidelines issued from time to time.
v) Repayment period of loan:
It depends upon the gross surplus generation in the scheme. The loan will be repaid in suitable monthly or quarterly instalments usually within a period of 5-7 years. Wherever required, the grace period is also considered.
vi) Insurance:
The building and other assets such as poultry sheds, equipments may be insured against natural calamities.
4. Format of bankable project for feed plants
4.1 Introduction:
It should cover the name of the company, location of plant, activities, products, capacity of plant and project outlay
4.2 Company :
It should cover the location of registered office, date of formation, registration and authorised share capital. It should also cover the date of incorporation and commencement of business, the objectives, areas of operation, subscribed share capital.
4.3 Promoters and their background:
Name and address of promoters, their background, experience and net worth.
4.4 Management of the company:
Persons looking after the day to day management, their background, experience,etc. should be covered.
4.5 Project profile:
i) Land and location:
This should cover the area of land, location of the plant, distances from nearby town, availability of approach roads, power and water supply and other communication including schools, banks, hospitals,etc.
ii) Civil Structures:
Name of the Architect, type of structures proposed, drawings and detailed cost analysis of various civil structures along with the present position of implementation may be indicated. The technical specifications of civil structures are given in Annexure - III.
iii) Plant and Machinery:
The major plant and machinery (imported and indigenous separately), sources of supply, specifications and quotations for various items of equipment need to be given. List of major suppliers of feed plant machinery is given in Annexure - IV.
iv) Technical collaboration:
The name of the technical collaborators for monitoring and marketing of the products along with their addresses and the type of collaborations should be indicated. Technical collaboration fee/royalty to be paid should also be indicated.
v) Manufacturing process:
It should cover the manufacturing process of feed (mash/ pelleted feed) in the form of flow chart, proportion of various feeds to be manufactured and the composition of the different feeds.
vi) Infrastructural facilities:
a) Raw Material:
The feed ingredients (grains, cakes, brans, fish meal, molasses, vitamins, minerals,etc.), source and method of procurement, basis of price fixation, agreements if any for regular supply of raw material may be indicated. BSI standrads for feed ingredients are given in Annexure - V. Average nutritive values of common feed ingredients and the reasonable levels for their inclusion are given in Annexure - VI and VII respectively.
b) Packing material :
The type of packing material required (jute/plastic bags), source of supply, capacity and price of bag, approximate quantity required per month and method of purchase need to be furnished.
c) Utilities:
* Power: The total power requirement of the unit, source of power supply, position of power supply in the area and stand by arrangements made by the company, whether permission is obtained or applied to the State Electricity Board for power connection.
* Water: The source of supply, quantity available vis-a-vis daily requirement and arrangements made for supply of water.
* Fuel : The requirement of coal, diesel and gas, source of supply, adequacy of availability and cost of material may be mentioned.
* Steam: Quantity required, source and capacity of boiler.
* Transportation: The mode of transportation of raw material as well as feed, whether owned or hired vehicles, availability of vehicles and cost per kilometer.
* Laboratory : Whether the company is planning to set up a laboratory for testing the raw material as well as feed, specification of laboratory equipment, quality and cost, the proposed tests to be carried out and the adequacy of man power for carrying out these tests.
vi) Pollution Control:
The type of measures proposed for controlling the air pollution inside the unit and also for the employees of the company.
vii) Man power:
It should cover the technical skill and unskilled labourers required, their availability and source, method of recruiting them and also their salary structures/wage rates should be mentioned.
4.6 Marketing and business prospects:
a) The product mix, capacity of the plant, year-wise capacity utilisation and actual quantity of products produced per year.
b) Areas of marketing of the product and strategies i.e. Talukas, district or state-wise quantities proposed for sale, methods of sale, agencies/contractors, method of transportation of products, incentives or commission proposed to be paid, expenditure on publicity and brand name should be indicated. It should also cover the proposed marketing network in terms of staff and material.
c) Market survey for raw materials as well as for the products to be sold covering the demand/supply position, other sources of supply of products, the average price of products for the last 4-5 years and also the potential for selling the products should also be covered.
4.7 Socio-economic benefits: The number of villages, farmers and number of animals benefited and also number of persons employed either directly or indirectly in this activity.
4.8 Schedule of Implementation:
The proposed implementation schedule of the scheme may be indicated starting from purchase of land till commercial production.
4.9 Swot Analysis:
The strengths, weaknesses, opportunities and threats should be discussed separately.
4.10 Project cost:
i) Land:
Area of land, cost of land and conversion charges
ii) Site and land development:
It should cover the land levelling, fencing/compound wall, internal roads, drainage,etc. The specifications, unit cost and the total cost should be furnished.
iii) Civil structures:
The civil structures comprises of factory building, raw material and finished products godowns, office, laboratory, quarters, garage, canteen, etc. Detailed plan lay outs along with cost estimates certified by the Engineer should be given.
iv) Plant and machinery:
Imported/indigenous components, major suppliers, quantities, unit cost and the total cost of the plant and machinery including the misc. equipments should be given. The quotations along with the specifications is required to be enclosed.
v) Electrical system:
Covering transformer, diesel generators, internal and external electrification and also the deposits to be paid to the State Electricity Boards. The specifications of transformer as well as generators along with the quotations should be furnished. With reference to electrification - the break up is required to be given.
vi) Water supply and other utilities:
Source of water, specifications and expenditure on water supply system, cost of boilers for steam generation,etc.
vii) Vehicles:
Number and cost along with justification on requirement of the various vehicles, price quotations from the dealers along with specifications should be furnished.
viii) Pre-operative and preliminary expenses:
The item wise cost and justification should be given.
ix) Contingencies:
Percentage of contingencies and its reasonableness
x) Margin money for working capital:
The margin money for working capital may be worked out taking into account the requirements of various raw material, packing material, fuel,etc., finished products and sundry debtors for one cycle of operation.
4.11 Sources of Finance:
The total project cost and source of funds (equity/public issue, subsidy, loan,etc. should be furnished.
4.12 Techno economic parameters:
Should cover the capacity of the plant, yearwise capacity utilisation, quantity of feed manufactured, commission on sale of feed, transportation charges, power and fuel charges, packing material charges, salaries and wages, marketing expenses and other overheads. The procurement prices of various ingredients as well as the sale price of various brands of feed should be indicated.
4.13 Economics of the project and cash flow analysis:
Considering the capacity utilisation and also the various techno economic parameters, the income and expenditure streams have to be worked out to arrive at the gross profit. From the cash flow analysis, the Benefit Cost Ratio (BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR) of the project may be worked out to establish the economic/financial viability of the project.
4.14 The model economics for feed plant with a capacity to manufacture 100 MT per day are given in statements 1-10 as per the requirements sepcified in previous paragarphs.
4.15 Documents and clearances required:
Site Plan, structural drawings,quantities and detailed cost analysis of various civil structures certified by an Architect, Price quotations and specifications for various items of plant and machinery, Approval from State Electricity Board for load connection, NOC from Panchayat, approval from Inspector of Factories, Registrar of Copy Rights, approval for brand registration, Registration of Company, Memorandum of Articles of Association, Registration of Unit under SSI (If applicable), permission for procurement of molasses, agreement between the Company and the collaborator for technical assistance and market survey report.
5. Information sources and training facilities
Further reference list of books/periodicals on cattle and poultry feeds is given in Annexure - VIII. The addresses of training centres on feed formulation and quality control are given in Annexure - IX.
6. Checklist for financing cattle/poultry feed projects
(To be completed by the Executive/Officers of the Bank forwarding the Scheme)
1. Articles of Association and Memorandum of
the Company/Corporation ------------
2. Balance Sheets and profit and loss statements
for last 2-3 years for the existing companies ------------
3. Profile of Directors of Company ------------
4. Project cost and sources of funds ------------
5. In case of consortium, names of banks participating
in consortium ------------
6. Details of site, availability of land, electricity and water -----------
7. Availability of raw materials - Feed ingredients'
source of supply and costs -----------
8. Capacity of the feed plant per shift, no. of shifts
and capacity utilisation over years -----------
9. Type of feeds and quantities proposed to be manufactured -----------
10. Market survey report for raw material as well as
finished products ------------
11. Marketing strategy and net work for the sale of feed ------------
12. Technical and other man power requirement
availability and their salary structure ------------
13. Techno economic parameters for working
out the economics of the project ------------
14. Cash flow and profitability statement ------------
15. Break even point and income generation ------------
16. Arrangements for working capital requirements ------------
17. Undertaking from State Govt. for meeting the
deficit if any and also for repayment of loan
and interest if it is a corporation activity ------------
18. Licenses/approvals/permissions required
from the concerned departments -----------
19. Site plan of the area -----------
20. Detailed drawings and cost estimates for all items
of civil works signed by qualified engineers. ------------
21. Detailed specifications and cost of utilities ------------
22. Detailed specifications of each of equipment/
machinery and its cost based on market data/quotations ------------
23. Detailed list and cost of imported items
of equipment and license for import ------------
24. Implementation schedule and the mode of
execution of work i.e. Departmentally/
labour contract/turnkey basis -----------
Annexure - I
Growth pattern in production of compounded feeds by CLFMA members
The success of livestock farming is largely dependent on the continuous supply of good quality nutritious feeds at competitive price. Feed alone constitute about 60-70 per cent of total cost of production of livestock products. Therefore, it needs more attention though other factors are also important for remunerative return from livestock enterprises. The farmers used to feed the crop residues to the cattle and buffaloes, however, sheep and goat are normally maintained on grazing/browsing with supplementary feeding of broken grains/other bypoducts. Therefore, feeding of balanced concentrate feed to these animals was not common, because of low productivity and unremunerative prices for the livestock products. The improved poultry is fed only with concentrated feed. The requirement of food of animal origin like milk, meat and eggs is increasing at a faster rate due to increased awareness about the significance of protective proteins for the maintenance of human health. The farmers realised the importance and started rearing good quality and high productive animals/birds under stall fed conditions.
2. Scope for feed industry
2.1 With the increased demand for livestock products for domestic consumption as well as export, the farmers realised maintaining of quality animals with proper feeding and management. The proportion of crossbred animals or improved strains of birds increased over the years. This has necessitated higher demand for balanced concentrate feed. Presently, various milk unions, poultry corporations/ federations and private companies are supplying both cattle and poultry feed of different qualities and forms (mash/ pellets/ crumbles) to the farmers. Large size poultry farm/dairy farm owners, hatcheries and cooperative poultry units are normally manufacturing their own feed by installing the necessary plant and machinery on the farm. Some of the farmers are still feeding broken grains, cakes, gur, salt,etc. to dairy animals by mixing at home.
2.2 The compounded feed manufactured by CLFMA (Compounded Livestock Feed Manufacturers Association) members during 1998-99 was 3.16 million tonnes. The feed production under organised sector since 1965 is given in Annexure-I. The demand-supply position for various feeds is given in Annexure - II. The present supply is only half of the total requirement. Moreover, the demand for small ruminants (goat and sheep) under stall fed conditions, rabbits and pigs is not estimated. Considering their requirements, the gap is much more.
2.3 The feed production could not keep pace with the growth in various species of farm animals and poultry. To meet the growing demand of processed and complete feeds for different class of animals, the unconventional feeds should also be used in the rations through proper processing for removal of anti nutritional factors. Thus, it indicates that there is a good scope for setting up feed processing plants of different capacities for production of various quality feeds.
3. Financial assistance for feed industry
3.1 NABARD is an apex institution for all matters relating to policy, planning and operations in the field of agricultural credit. It serves as a apex refinancing agency for the institutions providing investment and production credit. It promotes development through formulation and appraisal of projects through a well organised Technical Services Department at HO and Technical Cells at each of the ROs.
3.2 Loans from banks with refinance facility from NABARD are available for starting feed processing plants. For obtaining the bank loan, the entrepreneurs/companies should apply to the nearest branch of the commercial or cooperative or regional rural banks in their area in the prescribed application form which is available in the branches of financing banks. The entrepreneurs are also required to submit a detailed project report for which they can also take the help or guidance of the technical officers attached to the bank.
3.3 For feed processing plant with very large outlay, a detailed project reports will have to be prepared. The model format for formulation of bankable project is given in para 4. Banks provide financial assistance for the following purposes.
(a) Construction of factory building, godowns for raw materials as well as for finished products, office, canteen, generator room, essential quarters,etc.
(b) Purchase of equipments such as grinder, feed mixer, pelletizer, elevators, feed packing units, etc.
(c) Miscellaneous equipments such as transformer, generators, weighing scales vehicles, etc.
(d) Margin money for working capital requirement for one cycle of operation.
The cost of land is not considered for loan. However, if land is purchased for establishing a feed processing plant, land cost can be treated as party's margin money upto a maximum of 10 per cent of the total cost of project.
3.4. Scrutiny of Scheme by the Bank:
After the scheme is submitted to the Bank, it is examined for technical feasibility and economic viability.
(a) Technical Feasibility: This would briefly include:
(i) Availability of raw material such as grains, brans, oil cakes, mineral mixture, molasses, fish meal, vitamins, etc.
(ii) Feed formulation and technical norms
(iii) Infrastructure available for feed testing, procurement of raw material, marketing of different feeds, experience of the entrepreneur.
(b) Financial Viability: This would briefly cover:
(i) Project outlay, sources of funds and loan requirement
(ii) Raw material cost, expenses on fuel, labour, transport commission to be paid and other overheads
(iii) Output costs i.e. quantity and sale price of different feeds, number and sale price of empty gunny bags.
(iv) Income Expenditure statement and annual gross surplus
(v) Cash flow analysis - Benefit Cost Ratio(BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR)
(vi) Repayment Schedule i.e. Repayment of principal loan amount and interest
Other documents such as loan application forms, security aspects, margin money requirements,etc. are also examined. A field visit to scheme area is undertaken for conducting techno economic feasibility study for appraisal of the scheme.
3.6. Sanction of Bank loan and its disbursement:
After ensuring its technical feasibility and financial viability, the scheme is sanctioned by the Bank. The loan is disbursed in two or three stages against construction of various civil structures, purchase of plant and machinery, miscellaneous fixed assets and margin money for working capital requirements. Constant follow up and supervision of the scheme is done by the Bank.
3.7. Lending terms
i) Unit Cost:
The Unit Cost depends upon the capacity of the feed mixing unit, type of feeds to be manufactured and also the infrastructure required.
ii) Margin Money:
In case if the feed mixing unit is integral part of the commercial poultry or dairy scheme, the down payment is based on the category of beneficiary. However, in respect of feed processing plant of larger size, the margin money is normally 25 per cent of the total cost of the project.
iii) Interest Rate:
It depends upon the RBI guidelines and also the individual banks. The present rate of interest for Rs.2.00 lakhs and above is linked to primary lending rates of banks which varies with the type of investment, beneficiary and also the credit rating.
iv) Security:
Security will be as per RBI guidelines issued from time to time.
v) Repayment period of loan:
It depends upon the gross surplus generation in the scheme. The loan will be repaid in suitable monthly or quarterly instalments usually within a period of 5-7 years. Wherever required, the grace period is also considered.
vi) Insurance:
The building and other assets such as poultry sheds, equipments may be insured against natural calamities.
4. Format of bankable project for feed plants
4.1 Introduction:
It should cover the name of the company, location of plant, activities, products, capacity of plant and project outlay
4.2 Company :
It should cover the location of registered office, date of formation, registration and authorised share capital. It should also cover the date of incorporation and commencement of business, the objectives, areas of operation, subscribed share capital.
4.3 Promoters and their background:
Name and address of promoters, their background, experience and net worth.
4.4 Management of the company:
Persons looking after the day to day management, their background, experience,etc. should be covered.
4.5 Project profile:
i) Land and location:
This should cover the area of land, location of the plant, distances from nearby town, availability of approach roads, power and water supply and other communication including schools, banks, hospitals,etc.
ii) Civil Structures:
Name of the Architect, type of structures proposed, drawings and detailed cost analysis of various civil structures along with the present position of implementation may be indicated. The technical specifications of civil structures are given in Annexure - III.
iii) Plant and Machinery:
The major plant and machinery (imported and indigenous separately), sources of supply, specifications and quotations for various items of equipment need to be given. List of major suppliers of feed plant machinery is given in Annexure - IV.
iv) Technical collaboration:
The name of the technical collaborators for monitoring and marketing of the products along with their addresses and the type of collaborations should be indicated. Technical collaboration fee/royalty to be paid should also be indicated.
v) Manufacturing process:
It should cover the manufacturing process of feed (mash/ pelleted feed) in the form of flow chart, proportion of various feeds to be manufactured and the composition of the different feeds.
vi) Infrastructural facilities:
a) Raw Material:
The feed ingredients (grains, cakes, brans, fish meal, molasses, vitamins, minerals,etc.), source and method of procurement, basis of price fixation, agreements if any for regular supply of raw material may be indicated. BSI standrads for feed ingredients are given in Annexure - V. Average nutritive values of common feed ingredients and the reasonable levels for their inclusion are given in Annexure - VI and VII respectively.
b) Packing material :
The type of packing material required (jute/plastic bags), source of supply, capacity and price of bag, approximate quantity required per month and method of purchase need to be furnished.
c) Utilities:
* Power: The total power requirement of the unit, source of power supply, position of power supply in the area and stand by arrangements made by the company, whether permission is obtained or applied to the State Electricity Board for power connection.
* Water: The source of supply, quantity available vis-a-vis daily requirement and arrangements made for supply of water.
* Fuel : The requirement of coal, diesel and gas, source of supply, adequacy of availability and cost of material may be mentioned.
* Steam: Quantity required, source and capacity of boiler.
* Transportation: The mode of transportation of raw material as well as feed, whether owned or hired vehicles, availability of vehicles and cost per kilometer.
* Laboratory : Whether the company is planning to set up a laboratory for testing the raw material as well as feed, specification of laboratory equipment, quality and cost, the proposed tests to be carried out and the adequacy of man power for carrying out these tests.
vi) Pollution Control:
The type of measures proposed for controlling the air pollution inside the unit and also for the employees of the company.
vii) Man power:
It should cover the technical skill and unskilled labourers required, their availability and source, method of recruiting them and also their salary structures/wage rates should be mentioned.
4.6 Marketing and business prospects:
a) The product mix, capacity of the plant, year-wise capacity utilisation and actual quantity of products produced per year.
b) Areas of marketing of the product and strategies i.e. Talukas, district or state-wise quantities proposed for sale, methods of sale, agencies/contractors, method of transportation of products, incentives or commission proposed to be paid, expenditure on publicity and brand name should be indicated. It should also cover the proposed marketing network in terms of staff and material.
c) Market survey for raw materials as well as for the products to be sold covering the demand/supply position, other sources of supply of products, the average price of products for the last 4-5 years and also the potential for selling the products should also be covered.
4.7 Socio-economic benefits: The number of villages, farmers and number of animals benefited and also number of persons employed either directly or indirectly in this activity.
4.8 Schedule of Implementation:
The proposed implementation schedule of the scheme may be indicated starting from purchase of land till commercial production.
4.9 Swot Analysis:
The strengths, weaknesses, opportunities and threats should be discussed separately.
4.10 Project cost:
i) Land:
Area of land, cost of land and conversion charges
ii) Site and land development:
It should cover the land levelling, fencing/compound wall, internal roads, drainage,etc. The specifications, unit cost and the total cost should be furnished.
iii) Civil structures:
The civil structures comprises of factory building, raw material and finished products godowns, office, laboratory, quarters, garage, canteen, etc. Detailed plan lay outs along with cost estimates certified by the Engineer should be given.
iv) Plant and machinery:
Imported/indigenous components, major suppliers, quantities, unit cost and the total cost of the plant and machinery including the misc. equipments should be given. The quotations along with the specifications is required to be enclosed.
v) Electrical system:
Covering transformer, diesel generators, internal and external electrification and also the deposits to be paid to the State Electricity Boards. The specifications of transformer as well as generators along with the quotations should be furnished. With reference to electrification - the break up is required to be given.
vi) Water supply and other utilities:
Source of water, specifications and expenditure on water supply system, cost of boilers for steam generation,etc.
vii) Vehicles:
Number and cost along with justification on requirement of the various vehicles, price quotations from the dealers along with specifications should be furnished.
viii) Pre-operative and preliminary expenses:
The item wise cost and justification should be given.
ix) Contingencies:
Percentage of contingencies and its reasonableness
x) Margin money for working capital:
The margin money for working capital may be worked out taking into account the requirements of various raw material, packing material, fuel,etc., finished products and sundry debtors for one cycle of operation.
4.11 Sources of Finance:
The total project cost and source of funds (equity/public issue, subsidy, loan,etc. should be furnished.
4.12 Techno economic parameters:
Should cover the capacity of the plant, yearwise capacity utilisation, quantity of feed manufactured, commission on sale of feed, transportation charges, power and fuel charges, packing material charges, salaries and wages, marketing expenses and other overheads. The procurement prices of various ingredients as well as the sale price of various brands of feed should be indicated.
4.13 Economics of the project and cash flow analysis:
Considering the capacity utilisation and also the various techno economic parameters, the income and expenditure streams have to be worked out to arrive at the gross profit. From the cash flow analysis, the Benefit Cost Ratio (BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR) of the project may be worked out to establish the economic/financial viability of the project.
4.14 The model economics for feed plant with a capacity to manufacture 100 MT per day are given in statements 1-10 as per the requirements sepcified in previous paragarphs.
4.15 Documents and clearances required:
Site Plan, structural drawings,quantities and detailed cost analysis of various civil structures certified by an Architect, Price quotations and specifications for various items of plant and machinery, Approval from State Electricity Board for load connection, NOC from Panchayat, approval from Inspector of Factories, Registrar of Copy Rights, approval for brand registration, Registration of Company, Memorandum of Articles of Association, Registration of Unit under SSI (If applicable), permission for procurement of molasses, agreement between the Company and the collaborator for technical assistance and market survey report.
5. Information sources and training facilities
Further reference list of books/periodicals on cattle and poultry feeds is given in Annexure - VIII. The addresses of training centres on feed formulation and quality control are given in Annexure - IX.
6. Checklist for financing cattle/poultry feed projects
(To be completed by the Executive/Officers of the Bank forwarding the Scheme)
1. Articles of Association and Memorandum of
the Company/Corporation ------------
2. Balance Sheets and profit and loss statements
for last 2-3 years for the existing companies ------------
3. Profile of Directors of Company ------------
4. Project cost and sources of funds ------------
5. In case of consortium, names of banks participating
in consortium ------------
6. Details of site, availability of land, electricity and water -----------
7. Availability of raw materials - Feed ingredients'
source of supply and costs -----------
8. Capacity of the feed plant per shift, no. of shifts
and capacity utilisation over years -----------
9. Type of feeds and quantities proposed to be manufactured -----------
10. Market survey report for raw material as well as
finished products ------------
11. Marketing strategy and net work for the sale of feed ------------
12. Technical and other man power requirement
availability and their salary structure ------------
13. Techno economic parameters for working
out the economics of the project ------------
14. Cash flow and profitability statement ------------
15. Break even point and income generation ------------
16. Arrangements for working capital requirements ------------
17. Undertaking from State Govt. for meeting the
deficit if any and also for repayment of loan
and interest if it is a corporation activity ------------
18. Licenses/approvals/permissions required
from the concerned departments -----------
19. Site plan of the area -----------
20. Detailed drawings and cost estimates for all items
of civil works signed by qualified engineers. ------------
21. Detailed specifications and cost of utilities ------------
22. Detailed specifications of each of equipment/
machinery and its cost based on market data/quotations ------------
23. Detailed list and cost of imported items
of equipment and license for import ------------
24. Implementation schedule and the mode of
execution of work i.e. Departmentally/
labour contract/turnkey basis -----------
Annexure - I
Growth pattern in production of compounded feeds by CLFMA members
| Year | Cattle and other Feeds | Poultry feeds | Total feed | ||
| | Production (000 tonnes) | % to total | Production (000 tonnes) | % to total | Production (000 tonnes) |
| 1,965 | 53.30 | 67.73 | 25.40 | 32.27 | 78.70 |
| 1,970 | 125.40 | 59.80 | 84.30 | 40.20 | 209.70 |
| 1,975 | 275.30 | 65.67 | 143.90 | 34.33 | 419.20 |
| 1,980 | 549.90 | 61.09 | 350.20 | 38.91 | 900.10 |
| 1,985 | 867.30 | 63.30 | 502.80 | 36.70 | 1370.10 |
| 1,990 | 1324.50 | 61.29 | 833.70 | 38.71 | 2161.20 |
| 1991-1992* | 1479.20 | 61.07 | 942.80 | 38.93 | 2422.00 |
| 1992-1993* | 1475.30 | 63.09 | 863.10 | 36.91 | 2338.40 |
| 1993-1994* | 1370.80 | 61.00 | 876.50 | 39.00 | 2247.30 |
| 1994-1995* | 1465.10 | 57.69 | 1074.60 | 42.31 | 2539.70 |
| 1995-1996* | 1542.80 | 54.89 | 1267.80 | 45.11 | 2810.60 |
| 1996-1997* | 1528.60 | 52.03 | 1409.00 | 47.97 | 2937.60 |
| 1997-1998* | 1430.70 | 51.54 | 1345.00 | 48.46 | 2775.70 |
| 1998-1999* | 1488.20 | 46.73 | 1696.60 | 53.27 | 3184.80 |
| 1999-2000 | 1302.30 | 44.46 | 1600.70 | 55.14 | 2903.00 |
| 2000-2001 | 1274.80 | 45.62 | 1519.30 | 54.38 | 2794.10 |
* April to March of the years indicated
Annexure - II
Demand for cattle and poultry feeds and supply by CLFMA members
Population in millions
Feed in million tonnes
Annexure - II
Demand for cattle and poultry feeds and supply by CLFMA members
Population in millions
Feed in million tonnes
| Particulars | 1994-95 | 1995-96 | 1996-97 | 1997-98 | 1998-99 | 1999-2K |
| Estimated cattle population : | | | | | | |
| Cattle Population | | | | | | |
| CB cows | | | | | | |
| Animals in milk | 27.874 | 27.875 | 27.876 | 27.878 | 27.879 | 27.88 |
| Dry animals | 33.583 | 33.584 | 33.586 | 33.588 | 33.589 | 33.591 |
| Buffaloes | | | | | | |
| Animals in milk | 24.570 | 24.571 | 24.572 | 24.574 | 24.575 | 24.576 |
| Dry animals | 15.266 | 15.267 | 15.268 | 15.268 | 15.269 | 15.27 |
| Cattle feed requirement | | | | | | |
| CB cows | | | | | | |
| Animals in milk | 7.156 | 7.156 | 7.156 | 7.157 | 7.157 | 7.157 |
| Dry animals | 2.155 | 2.155 | 2.156 | 2.156 | 2.156 | 2.156 |
| Buffaloes | | | | | | |
| Animals in milk | 12.232 | 12.233 | 12.234 | 12.234 | 12.235 | 12.235 |
| Dry animals | 1.900 | 1.900 | 1.900 | 1.900 | 1.900 | 1.901 |
| A. Total cattle feed requirement | 23.443 | 23.445 | 23.446 | 23.447 | 23.448 | 23.449 |
| Poultry population | | | | | | |
| Commercial layers | 118 | 123 | 127 | 133 | 137 | 145 |
| Commercial broilers | 532 | 532 | 585 | 600 | 612 | 625 |
| Layer parents | 1.18 | 1.23 | 1.27 | 1.33 | 1.37 | 1.45 |
| Broiler parents | 3.8 | 3.8 | 4.18 | 4.29 | 4.37 | 4.46 |
| Poultry feed requirements | | | | | | |
| Commercial layers | 5.61 | 5.84 | 6.03 | 6.32 | 6.51 | 6.89 |
| Commercial broilers | 1.76 | 1.76 | 1.93 | 1.98 | 2.02 | 2.06 |
| Layer parents | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 |
| Broiler parents | 0.25 | 0.25 | 0.27 | 0.28 | 0.28 | 0.29 |
| B. Total poultry feed requirements | 7.67 | 7.91 | 8.3 | 8.64 | 8.88 | 9.31 |
| C. Total of cattle and poultry feed requirement (A + B) | 31.11 | 31.351 | 31.744 | 32.089 | 32.328 | 32.762 |
| Supply of livestock feed from CLFMA members | 2.54 | 2.81 | 2.91 | 2.76 | 3.16 | 2.90 |
Annexure -III
Technical Requirements of Civil structures
1. Site Plan
A detailed site plan indicating the following information should be furnished:
- Area of the land
- Boundary conditions and approach road
- Layout, location of various existing and proposed
structures indicating with different colours (preferably)
2. Drawings and rate analysis
Structural and Architectural drawings of each item of civil constructions, measurement sheet, abstract of measurement and estimate of work rates approved in the schedule of rates, current market rates and analysis of rates applied to site conditions should be provided.
3. Development and Construction works
3.1 Land Development
The type of development, earth work and the cost should be given.Care should be taken to limit the cost by assessing the area - requirement for various construction works.
3.2 Fencing
Fencing can be of barbed wire with angle iron/ R.C.C./ Stone/ Wooden poles or chain link or boundary wall. The prevailing cost of these fences/wall may be considered.
3.3 Roads
Normally, Water Bound Macadam (WBM) roads are adequate. Normal road width of 15 to 20 ft. is sufficient. The total length, width and the height of the road alongwith the prevailing cost may be furnished.
3.4 Civil Structures:
i) Godown : For raw material and finished products. Normally, the raw material godown with a capacity to hold ingredients for a period of 45 days is considered. For storing 200 kg. of raw material, roughly one sq.ft. area is required. Similarly, in case of finished products(feed) also, for storage of one week production the godown may be considered.
ii) Silos : The silos for storage of grains may also be considered in case of large size plants. The silos may be of cement or aluminium or steel structure.
iii) Factory Building: Depending upon the capacity of the plant, the factory building area may also be considered. Normally, for a 10 tonne per day capacity plant, an area of 600 sq.ft. is sufficient. In case of automatic plants, higher areas may be considered which includes the ingredient bins, elevators and control panel areas,etc.
iv) Laboratory: For proximate analysis of ingredients as well as finished product it is essential to have own laboratory in case of large size processing plants. An area of 500-600 sq.ft. may be considered for such laboratory purpose.
v) Office Building : It depends upon the number of staff to be positioned in office for a plant with a capacity to handle 100 tonnes per day, an office area of 800-1000 sq.ft. is approximately sufficient.
vi) Store Room : It depends upon the capacity of the plant. A separate store may be considered for other equipments and vitamins, growth promoters,etc.
vii) Generator Room : 200-400 sq.ft. area for a generator is sufficient.
viii) Security Post: A Security Post at the entrance is essential to control the movement of trucks as well as the mobility of staff.
ix) Quarters:
Manager : Plinth area of 700-800 sq.ft. area is adequate for the purpose.
Supervisor: A maximum plinth area of 400 sq.ft. may be considered.
Labour and other staff: 200 sq.ft. area is adequate.
The quarters are normally considered only for the essential staff who are required to be on the site/plant.
x) Weigh bridge : For the weighment of ingredients and the finished products, a weigh bridge is essential at the entrance.
xi) Raw Material drying area: For drying of the grains to reduce the moisture levels to the extent required for a longer time. The drying area depends upon the capacity of the plant and the quality of grains to be stored.
4. Minor Irrigation Structures
Source of water and the expenditure on MI structures like well, motor, pipeline, water tanks,etc. may be considered.
. Annexure - IV
List of major suppliers of Feed Plant Machinery
Technical Requirements of Civil structures
1. Site Plan
A detailed site plan indicating the following information should be furnished:
- Area of the land
- Boundary conditions and approach road
- Layout, location of various existing and proposed
structures indicating with different colours (preferably)
2. Drawings and rate analysis
Structural and Architectural drawings of each item of civil constructions, measurement sheet, abstract of measurement and estimate of work rates approved in the schedule of rates, current market rates and analysis of rates applied to site conditions should be provided.
3. Development and Construction works
3.1 Land Development
The type of development, earth work and the cost should be given.Care should be taken to limit the cost by assessing the area - requirement for various construction works.
3.2 Fencing
Fencing can be of barbed wire with angle iron/ R.C.C./ Stone/ Wooden poles or chain link or boundary wall. The prevailing cost of these fences/wall may be considered.
3.3 Roads
Normally, Water Bound Macadam (WBM) roads are adequate. Normal road width of 15 to 20 ft. is sufficient. The total length, width and the height of the road alongwith the prevailing cost may be furnished.
3.4 Civil Structures:
i) Godown : For raw material and finished products. Normally, the raw material godown with a capacity to hold ingredients for a period of 45 days is considered. For storing 200 kg. of raw material, roughly one sq.ft. area is required. Similarly, in case of finished products(feed) also, for storage of one week production the godown may be considered.
ii) Silos : The silos for storage of grains may also be considered in case of large size plants. The silos may be of cement or aluminium or steel structure.
iii) Factory Building: Depending upon the capacity of the plant, the factory building area may also be considered. Normally, for a 10 tonne per day capacity plant, an area of 600 sq.ft. is sufficient. In case of automatic plants, higher areas may be considered which includes the ingredient bins, elevators and control panel areas,etc.
iv) Laboratory: For proximate analysis of ingredients as well as finished product it is essential to have own laboratory in case of large size processing plants. An area of 500-600 sq.ft. may be considered for such laboratory purpose.
v) Office Building : It depends upon the number of staff to be positioned in office for a plant with a capacity to handle 100 tonnes per day, an office area of 800-1000 sq.ft. is approximately sufficient.
vi) Store Room : It depends upon the capacity of the plant. A separate store may be considered for other equipments and vitamins, growth promoters,etc.
vii) Generator Room : 200-400 sq.ft. area for a generator is sufficient.
viii) Security Post: A Security Post at the entrance is essential to control the movement of trucks as well as the mobility of staff.
ix) Quarters:
Manager : Plinth area of 700-800 sq.ft. area is adequate for the purpose.
Supervisor: A maximum plinth area of 400 sq.ft. may be considered.
Labour and other staff: 200 sq.ft. area is adequate.
The quarters are normally considered only for the essential staff who are required to be on the site/plant.
x) Weigh bridge : For the weighment of ingredients and the finished products, a weigh bridge is essential at the entrance.
xi) Raw Material drying area: For drying of the grains to reduce the moisture levels to the extent required for a longer time. The drying area depends upon the capacity of the plant and the quality of grains to be stored.
4. Minor Irrigation Structures
Source of water and the expenditure on MI structures like well, motor, pipeline, water tanks,etc. may be considered.
. Annexure - IV
List of major suppliers of Feed Plant Machinery
| 1 | Ashok Engineering Works Behind Satkar Hotel, Bankapur Chowk, Poona-Bangalore Road, Hubli 580 020 | 11 | Khare Engineering Industries C -17, Industrial Estate Coop.Society Miraj 416 410 |
| 2 | B I Industries 22-1-1040/9, Derulshafa Main Road Hyderabad 500 024 | 12 | Kiran Engineering Works G T Road, Batala - 143 505, Punjab |
| 3 | B K Allied Industries G T Road, Near Water Tanks Khanna - 141 401, Punjab | 13 | Paragon Enterprise Industries 27,GIDC Industrial Estate Nandesari-391340 Baroda Dist. Gujarat |
| 4 | Buhler (India) Ltd. 209, T V Industrial EstateS K Ahire Marg, Worli, Mumbai 400 028 | 14 | Power Tech 900/1/A,GIDC, Makarpura, Baroda 390 010 |
| 5 | Cremach Designs 893/4, GIDC Industrial Estate Makarpura, P B No.802 Baroda 390 010 | 15 | Precision products Plot No.2007, Phase IV GIDC Estate Vatva, Ahmedabad 382 445 |
| 6 | Forms and Gears L -3 , Industrial EstateGuindy, Madras 600 032 | 16 | Shakti Engineering Works G T Road, Batala 143 505, Punjab |
| 7 | Hard case Engineering Works Ltd. 5-3-325, Lalaji Meghaji Compound M G Road, Secunderabad - 3 | 17 | Spectoms Engineering Pvt Ltd. Purushottam Estate Bahvcharaji Road Baroda 390 018 |
| 8 | Indian Fabricators Phase IV Plot No.1305/1, GIDC Industrial EstateNaroda, Ahmedabad 382 330 | 18 | Sri Guru Siddheshwar Engineering Works, Karwar Road, Near INDI Pump Hubli - 580 024, Karnataka |
| 9 | Jaspal Steels & Allied Industries, Chandigarh Road P B No. 73, Khanna 141401, Punjab | 19 | Standard Equipment Co. Jandiala Road, Taran Taran Amritsar - 143 401Punjab |
| 10 | Jaymes Engineering Co.Ltd. Great Western Building 130-132, Shahid Bhagat Singh Rd. Mumbai 400 023. | 20 | Troika Processes Ltd. 607, Embassy Centre Nariman Point Mumbai 400 021. |
Annexure - V
BIS Standards for Feed/Ingredients
1. Animal feeds and feeding stuffs,
BIS Standards for Feed/Ingredients
1. Animal feeds and feeding stuffs,
-glossary of terms for IS :9703-1980
-methods of test for : General methods IS:7874 (Pt I)-1975
-minerals and trace elements IS:7874(PtII)-1975
-microbiological methods IS:7874(Pt III)-1975
-methods of sampling for aflatoxin analysis IS:13246:1992
-determination of aflatoxin B-1 content IS:13427:1992, IS 6651-1989
-determination of calcium: Titrimetric method IS:13433(PtI)-1992;
-Atomic absorption method IS:13433(PtII)-1992
-determination of calcium and
magnesium in mineral supplements IS: 13574-1992
-methods of test for : General methods IS:7874 (Pt I)-1975
-minerals and trace elements IS:7874(PtII)-1975
-microbiological methods IS:7874(Pt III)-1975
-methods of sampling for aflatoxin analysis IS:13246:1992
-determination of aflatoxin B-1 content IS:13427:1992, IS 6651-1989
-determination of calcium: Titrimetric method IS:13433(PtI)-1992;
-Atomic absorption method IS:13433(PtII)-1992
-determination of calcium and
magnesium in mineral supplements IS: 13574-1992
2. Blood meal IS : 7060-1973
3. Bone meal - IS: 1942-1968, IS:7061-1973(calcined)
4. Coconut Oilcake - Expeller pressed IS:2154-1986
Solvent extracted IS:3592-1985
5. Cottonseed Oilcake - Expeller pressed IS:1712-1982
solvent extracted IS:3592-1985
6. Dicalcium phosphate, animal feed grade IS:5470 -1969
7. Fish meal IS:4307 - 1983
8. Fodder yeast IS:3198 - 1965
9. Gram - chuni IS:3161 - 1965
- husk IS:3162 - 1965
10. Groundnut oilcake as livestock feed ingredient
- Expeller pressed IS:1713 - 1986
- solvent extracted IS:3441 - 1982
11. Guar meal IS: 4193 - 1986
12. Linseed oilcake as livestock feed ingredient
- Expeller pressed IS:1935 - 1982
-solvent extracted IS:3440 - 1985
13. Maize - bran IS:2153 - 1985
- germ oilcake IS:2151 - 1985
- gluten feed IS:2152 - 1972
14. Malt sprouts as livestock feed ingredient IS:11586 - 1986
15. Mango seed kernel IS:10671 - 1983
16. Meat meal as livestock feed ingredient IS:5065 -1986
17. Mustard and rape seed oilcake IS:1932 - 1986
18. Nigerseed oilcake, solvent extracted IS:5862 - 1970
19. Par boiled rice bran as livestock feed ingredient IS:9867 - 1981
20. Poultry, Nutrient requirements for IS:9863 - 1992
21. Rice bran IS:3648 - 1975
-solvent extracted IS:3593 - 1979
22. Rice polish IS:3163 - 1965
23. Safflower (kardi)oilcake
-Expeller pressed IS:2503 - 1886
-solvent extracted IS:6242 - 1985
24. Salseed meal, solvent extracted IS: 7059 - 1973
25. Sesamum (til) oilcake as livestock feed ingredient IS:1934 - 1982
26. Silk worm pupae, dry IS:6107 - 1971
27. Solvent extracted nigerseed oilcake (meal) IS: 5862 - 1970
28. Solvent extracted sal seed meal IS:7059 - 1973
29. Solvent extracted soyabean oilcake (meal) IS:10657 - 1983
30. Sunflower oilcake; undecorticated
-as livestock feed ingredient IS:10147 - 1982
-decorticated IS:10165 - 1982
31. Tapioca IS:1509 - 1972
32. Spent pulp IS: 5064 - 1980
33. Tur - chuni IS: 3160 - 1965
- husk IS: 5063 - 1969
34. Wheat bran IS: 2239 - 1971
Annexure - VI
Average Nutritive Values of common feed ingredients (Dry Matter basis)
3. Bone meal - IS: 1942-1968, IS:7061-1973(calcined)
4. Coconut Oilcake - Expeller pressed IS:2154-1986
Solvent extracted IS:3592-1985
5. Cottonseed Oilcake - Expeller pressed IS:1712-1982
solvent extracted IS:3592-1985
6. Dicalcium phosphate, animal feed grade IS:5470 -1969
7. Fish meal IS:4307 - 1983
8. Fodder yeast IS:3198 - 1965
9. Gram - chuni IS:3161 - 1965
- husk IS:3162 - 1965
10. Groundnut oilcake as livestock feed ingredient
- Expeller pressed IS:1713 - 1986
- solvent extracted IS:3441 - 1982
11. Guar meal IS: 4193 - 1986
12. Linseed oilcake as livestock feed ingredient
- Expeller pressed IS:1935 - 1982
-solvent extracted IS:3440 - 1985
13. Maize - bran IS:2153 - 1985
- germ oilcake IS:2151 - 1985
- gluten feed IS:2152 - 1972
14. Malt sprouts as livestock feed ingredient IS:11586 - 1986
15. Mango seed kernel IS:10671 - 1983
16. Meat meal as livestock feed ingredient IS:5065 -1986
17. Mustard and rape seed oilcake IS:1932 - 1986
18. Nigerseed oilcake, solvent extracted IS:5862 - 1970
19. Par boiled rice bran as livestock feed ingredient IS:9867 - 1981
20. Poultry, Nutrient requirements for IS:9863 - 1992
21. Rice bran IS:3648 - 1975
-solvent extracted IS:3593 - 1979
22. Rice polish IS:3163 - 1965
23. Safflower (kardi)oilcake
-Expeller pressed IS:2503 - 1886
-solvent extracted IS:6242 - 1985
24. Salseed meal, solvent extracted IS: 7059 - 1973
25. Sesamum (til) oilcake as livestock feed ingredient IS:1934 - 1982
26. Silk worm pupae, dry IS:6107 - 1971
27. Solvent extracted nigerseed oilcake (meal) IS: 5862 - 1970
28. Solvent extracted sal seed meal IS:7059 - 1973
29. Solvent extracted soyabean oilcake (meal) IS:10657 - 1983
30. Sunflower oilcake; undecorticated
-as livestock feed ingredient IS:10147 - 1982
-decorticated IS:10165 - 1982
31. Tapioca IS:1509 - 1972
32. Spent pulp IS: 5064 - 1980
33. Tur - chuni IS: 3160 - 1965
- husk IS: 5063 - 1969
34. Wheat bran IS: 2239 - 1971
Annexure - VI
Average Nutritive Values of common feed ingredients (Dry Matter basis)
| No. | Botanical name | Common name | CP (%) | DCP (%) | TDN (%) | DE MCal | ME MCal |
| A | CEREAL GRAINS | | | | | | |
| 1 | Avena Sativa | Oats, Jai | 10 | 7.5 | 80 | 3.5 | 2.8 |
| 2 | Eleusine coracana | Finger millet | 10 | 7.0 | 70 | 3.1 | 2.5 |
| 3 | Hordeum vulgare | Barley, Jav | 11 | 7.7 | 85 | 3.7 | 3.1 |
| 4 | Oryza sativa | Rice, Chawal | 8 | 6.0 | 85 | 3.7 | 3.2 |
| 5 | Panicum millaceum | Proso millet | 6 | 4.0 | 70 | 3.1 | 2.5 |
| 6 | Pennisetum typhoides | Pearl millet | 12 | 6.0 | 65 | 2.8 | 2.3 |
| 7 | Sorghum bicolor | sorghum, Jowar | 12 | 6.6 | 85 | 3.7 | 3.2 |
| 8 | Triticum aestivum | Wheat | 13 | 9.0 | 87 | 3.8 | 3.4 |
| 9 | Zea mays | Maize, Makka | 10 | 7.0 | 85 | 3.7 | 3.3 |
| | | | | | | | |
| B | LEGUMINOUS SEEDS | | | | | | |
| 1 | Cajanus cajan | Pigeonpea | 20 | 14.5 | 75 | 3.3 | 2.7 |
| 2 | Cicer arietinum | Chickpea, Gram | 20 | 14.0 | 85 | 3.7 | 3.2 |
| 3 | Cyamopsis tetragonolobo | Cluster bean | 30 | 22.5 | 79 | 3.5 | 2.8 |
| 4 | Dolichos lablab | Hyacinth bean | 17 | 10.2 | 70 | 3.1 | 2.5 |
| 5 | Gossypium spp. | Cotton seed | 18 | 12.5 | 88 | 3.8 | 3.3 |
| 6 | Glycine max. | Soyabean | 40 | 37.0 | 90 | 4.0 | 3.4 |
| 7 | Lathyrus sativus | Khesari | 29 | 22.0 | 85 | 3.7 | 3.2 |
| 8 | Lens esculenta | Lentil, Masoor | 25 | 20.0 | 80 | 3.5 | 2.9 |
| 9 | Phaseolus aconitifolius | Moth bean | 27 | 22.0 | 82 | 3.6 | 2.9 |
| 10 | Paureus | Green gram | 26 | 20.0 | 82 | 3.6 | 2.9 |
| 11 | P.radiatus | Black gram | 19 | 14.0 | 78 | 3.4 | 2.9 |
| 12 | P.calcaratus | Rice bean | 21 | 15.0 | 73 | 3.2 | 2.7 |
| 13 | Vigna sinensis | Cowpea, Lobia | 26 | 20.0 | 75 | 3.3 | 2 |
| C | OIL SEEDS | | | | | | |
| 1 | Arachis hypohaea | Groundnut seed | 30 | 23.0 | 130 | 5.8 | 5.0 |
| 2 | Brassica spp. | Mustard, Rape | 22 | 20.5 | 112 | 5.0 | 4.5 |
| 3 | Lunium usitatissium | Linseed, Flex | 19 | 15.5 | 118 | 5.2 | 4.3 |
| 4 | Sesamum indicum | Sesame, Til | 24 | 19.5 | 125 | 5.5 | 5.0 |
| D | NONCONVENTIONAL | | | | | | |
| | SEEDS | | | | | | |
| 1 | Acacia nilotica | Babul seed/pod | 14 | 10.2 | 65 | 3.0 | 2.6 |
| 2 | Cannabina | Seeds | 33 | --- | --- | --- | --- |
| 3 | Cassia tora | Chakunda | 18 | 12.5 | 88 | 3.9 | 3.2 |
| 4 | Crotalaria juncea | Sunhemp | 36 | 31.0 | 70 | 3.1 | 2.5 |
| E | PROTEIN SUPPLEMENTS | | | | | | |
| | (VEGETABLE SOURCE) | | | | | | |
| 1 | Arachis hypogaea | Expeller | 47 | 32.0 | 85 | 3.7 | 3.3 |
| | | Solvent ext. | 49 | 43.2 | 70 | 3.1 | 2.6 |
| 2 | Brassica spp. | Expeller | 34 | 28.5 | 80 | 3.5 | 2.9 |
| | | Solvent ext. | 38 | 30.5 | 68 | 3.0 | 2.4 |
| 3 | Carthamus tinctorius | Expeller | 42 | 32.0 | 69 | 3.0 | 2.5 |
| 4 | Cocos nucifera | Coconut | 23 | 18.0 | 85 | 3.7 | 3.2 |
| 5 | Glycine max. | Expeller | 41 | 35.7 | 86 | 3.7 | 3.3 |
| | | Solvent ext. | 46 | 41.4 | 80 | 3.5 | 3.0 |
| 6 | Gossypium spp. | Expeller | 28 | 20.0 | 80 | 3.5 | 2.9 |
| 7 | Linum Usitatissium | Expeller | 30 | 25.5 | 80 | 3.5 | 3.0 |
| 8 | Sesamum inidcum | Expeller | 40 | 35.0 | 85 | 3.7 | 3.3 |
| 9 | Zea mays cake | | 20 | 15.0 | 82 | 3.6 | 3.1 |
| 10 | Helianthus spp | Sunflower | 26 | 22.0 | 70 | 3.1 | 2.7 |
| 11 | Guizotia abyssinica | Niger cake | 45 | 25.5 | 55 | 2.4 | 2.0 |
| | (ANIMAL PROTEIN SOURCE) | | | | | | |
| 1 | Blood Meal | | 87 | 62.0 | 90 | 4.0 | 3.4 |
| 2 | Meat Meal | | 65 | 52.5 | 85 | 4.2 | 3.6 |
| 3 | Fish Meal | | 50 | 45.0 | 70 | 3.4 | 2.7 |
Annexure - VII
Reasonable levels of inclusion of various
Feed Ingredients in Poultry feeds
Reasonable levels of inclusion of various
Feed Ingredients in Poultry feeds
| S.No. | Ingredients | Level in diet (%) |
| | | |
| A | ENERGY FEEDS | |
| | | |
| 1 | Barley | 20 - 35 |
| 2 | Maize (yellow or white) | 60 |
| 3 | Oats | Less than 10 |
| 4 | Pearl millet or Bajra | 30 - 40 |
| 5 | Rice, hulled | 40 - 50 |
| 6 | Sorghum (white with low tannins) | 25 - 35 |
| 7 | Sorghum (milo or coloured) | Less than 10 |
| 8 | Wheat | 45 - 50 |
| | | |
| B | MILLING BYPRODUCTS OF CEREAL GRAINS | |
| | | |
| 1 | Hominy feed, Maize bran, Maize grit | Less than 10 |
| 2 | Molasses | 5 - 15 |
| 3 | Rice bran, deoiled rice bran | 10 - 20 |
| 4 | Rice polish | 25 - 40 |
| 5 | Salseed meal, deoiled | 3 - 5 |
| 6 | Tapioca chips, flour | 10 - 20 |
| | | |
| C | PROTEINOUS FEEDS (VEGETABLE SOURCE) | |
| | | |
| 1 | Coconut cake, Cottonseed cake | 5 |
| 2 | Groundnut cake, expeller | 40 |
| 3 | Groundnut cake, solvent extracted | 20 |
| 4 | Linseed cake | Less than 5 |
| 5 | Linseed cake, hot water treated | 20 |
| 6 | Mustard cake, rape cake, niger cake | Less than 10 |
| 7 | Safflower cake, decorticated | 20 |
| 8 | Sunflower cake, decorticated | 20 |
| 9 | Sesame cake or til cake, expeller | 20 |
| 10 | Soyabean meal, heat treated | 30 - 40 |
| 11 | Sunflower cake, decorticated | 20 |
| | | |
| D | PROTEINOUS FEEDS (ANIMAL SOURCES) | |
| | | |
| 1 | Fish meal, 45% protein | 10 |
| 2 | Fish meal, 55 - 60% protein | 6 - 8 |
| 3 | Fish scrap, fish solubles (dried) | 3 |
| 4 | Feather meal, hydrolysed | 3 |
| 5 | Silkworm pupae meal | 5 |
| 6 | Skim milk powder | 5 |
| | | |
| E | MISCELLANEOUS FEEDS | |
| | | |
| 1 | Animal and vegetable fats | 3 - 5 |
| 2 | Distillers dried grains and solubles | 10 |
| 3 | Leguminous fodders leaf meal | 5 |
| 4 | Penicillin mycellium wastes | 10 |
| | | |
| NB : | Some minor seeds like that of Lathyrus, Kasani, Dhaincha etc. and cakes like water washed neem seed kernel cake, mahua seed cake and other processed feeds may be used as replacement for similar feeds at 5 to 10 % levels. | |
Annexure - VIII
List of Training Centres on Feed Formulation and Quality control
1. Central Avian Research Institute,
Izatnagar - 243 122 (Uttar Pradesh)
2. Harayana Agricultural University
College of Animal Sciences, Hissar - 125 004
3. Regional Feed Analytical Laboratory
Govt. of India, CPBF Campus
Industrial Area, Chandigarh 160 002
4. Govt. of Maharashtra Feed Analytical Laboratory
C/o. Wool Research Centre, Sheed Breeding Farms
Gokhalinagar, Pune 411 016.
5. Regional Feed Analytical Laboratory
Govt. of India, C/o. Central Poultry
Breeding Farms,
Aarey Milk Colony, Mumbai 400 065.
6. B V Rao Institute of Poultry Management & Technology
Urlikanchan, Pune, Maharashtra
7. Central Poultry training Institute
Govt. of India, Hessarghatta
Bangalore 560 088
8. TAPCO Feed Analytical Labs
No.2, Chamiers Road, Nandanam
Chennai 500 035
9. ICAR Research Complex for North East Region
Bishnupur, Shillong 793 004
10. Orissa University of Agriculture and Technology
Bhubaneshwar 751 003 Annexure - IX
Books/Periodicals on Cattle/Poultry Feeds
-------------------------------------------------------------------------------------------------------------
Sr Name of Book Author Publishers
No.
------------------------------------------------------------------------------------------------------------
1. Hand book of Animal Husbandry ICAR ICAR Bhavan
Pusa, New Delhi
2. Animal Nutrition and Feeding Practices S K Ranjhan Vikas Publishers, New Delhi
3. Feeding of Poultry Dr B Panda ICAR, N.Delhi
4. Poultry Nutrition S Bose -do-
5. Agro Industrial by products
and non conventional feeds
for livestock feeding S K Ranjhan -do-
6. Text book of Feed processing
Technology N Pathak Vikas publishers, New Delhi
7. Poultry Feed Technology H C Saxena International
Book Distri-
butors
8. Operation and Maintenance
of Cattle Feed Plants NDDB MIS, Mehsana
9. Indian Poultry Industry
Year Book(1994) P R Gupta A-25, Priya-
darshanivihar
New Delhi
10. Dairy India Year Book(1997) P R Gupta A-25, Priya-
darshanivihar
New Delhi
------------------------------------------------------------------------------------------------------------
Statement 1 : Commercial Poultry Feed Formulations
List of Training Centres on Feed Formulation and Quality control
1. Central Avian Research Institute,
Izatnagar - 243 122 (Uttar Pradesh)
2. Harayana Agricultural University
College of Animal Sciences, Hissar - 125 004
3. Regional Feed Analytical Laboratory
Govt. of India, CPBF Campus
Industrial Area, Chandigarh 160 002
4. Govt. of Maharashtra Feed Analytical Laboratory
C/o. Wool Research Centre, Sheed Breeding Farms
Gokhalinagar, Pune 411 016.
5. Regional Feed Analytical Laboratory
Govt. of India, C/o. Central Poultry
Breeding Farms,
Aarey Milk Colony, Mumbai 400 065.
6. B V Rao Institute of Poultry Management & Technology
Urlikanchan, Pune, Maharashtra
7. Central Poultry training Institute
Govt. of India, Hessarghatta
Bangalore 560 088
8. TAPCO Feed Analytical Labs
No.2, Chamiers Road, Nandanam
Chennai 500 035
9. ICAR Research Complex for North East Region
Bishnupur, Shillong 793 004
10. Orissa University of Agriculture and Technology
Bhubaneshwar 751 003 Annexure - IX
Books/Periodicals on Cattle/Poultry Feeds
-------------------------------------------------------------------------------------------------------------
Sr Name of Book Author Publishers
No.
------------------------------------------------------------------------------------------------------------
1. Hand book of Animal Husbandry ICAR ICAR Bhavan
Pusa, New Delhi
2. Animal Nutrition and Feeding Practices S K Ranjhan Vikas Publishers, New Delhi
3. Feeding of Poultry Dr B Panda ICAR, N.Delhi
4. Poultry Nutrition S Bose -do-
5. Agro Industrial by products
and non conventional feeds
for livestock feeding S K Ranjhan -do-
6. Text book of Feed processing
Technology N Pathak Vikas publishers, New Delhi
7. Poultry Feed Technology H C Saxena International
Book Distri-
butors
8. Operation and Maintenance
of Cattle Feed Plants NDDB MIS, Mehsana
9. Indian Poultry Industry
Year Book(1994) P R Gupta A-25, Priya-
darshanivihar
New Delhi
10. Dairy India Year Book(1997) P R Gupta A-25, Priya-
darshanivihar
New Delhi
------------------------------------------------------------------------------------------------------------
Statement 1 : Commercial Poultry Feed Formulations
| Sr. No. | Ingredient | Commercial Layer Feed | ||||||
| | | Chick | Grower | Layer | ||||
| | | Cost | Proportion | Value | Proportion | Value | Proportion | Value |
| | | (Rs./ Kg) | (Kg) | (Rs.) | (Kg) | (Rs.) | (Kg) | (Rs.) |
| 1 | Maize | 4.88 | 511.90 | 2498.07 | 319.30 | 1558.18 | 391.50 | 1910.52 |
| 2 | Rice Polish | 4.00 | 50.00 | 200.00 | 50.00 | 200.00 | 50.00 | 200.00 |
| 3 | Jowar | 4.19 | 0.00 | 0.00 | 60.00 | 251.40 | 40.00 | 167.60 |
| 4 | Rice Kani | 5.00 | 50.00 | 250.00 | 100.00 | 500.00 | 60.00 | 300.00 |
| 5 | DEO Rice Polish | 3.00 | 0.00 | 0.00 | 124.10 | 372.30 | 0.00 | 0.00 |
| 6 | DEO Groundnut cake | 7.90 | 50.00 | 395.00 | 90.00 | 711.00 | 130.00 | 1027.00 |
| 7 | DEO Soyabean meal | 8.00 | 230.00 | 1840.00 | 80.00 | 640.00 | 110.00 | 880.00 |
| 8 | Sunflower meal/extract | 4.02 | 50.00 | 201.00 | 120.00 | 482.40 | 90.00 | 361.80 |
| 9 | Limestone powder | 1.00 | 5.00 | 5.00 | 5.00 | 5.00 | 20.00 | 20.00 |
| 10 | Dicalcium Phosphate | 11.26 | 10.00 | 112.60 | 10.00 | 112.60 | 10.00 | 112.60 |
| 11 | Salt Pure | 4.00 | 5.00 | 20.00 | 5.00 | 20.00 | 4.00 | 16.00 |
| 12 | Poultry Mineral Mixture | 2.00 | 30.00 | 60.00 | 30.00 | 60.00 | 30.00 | 60.00 |
| 13 | Shell Grit/ Marble Grit | 1.40 | 0.00 | 0.00 | 0.00 | 0.00 | 50.00 | 70.00 |
| 14 | Vitamin and Probiotics Mix | 30.00 | 6.00 | 180.00 | 6.00 | 180.00 | 13.00 | 390.00 |
| 15 | D.L. Methionine | 180.00 | 1.50 | 270.00 | 0.40 | 72.00 | 1.20 | 216.00 |
| 16 | L.Lysine | 140.00 | 0.60 | 84.00 | 0.20 | 28.00 | 0.30 | 42.00 |
| | Total(Kg) | | 1000.00 | 6115.67 | 1000.00 | 5192.88 | 1000.00 | 5773.52 |
Statement 1 : Commercial Poultry Feed Formulations (continuation ...)
| Sr. No. | Ingredient | | Commercial Broiler Feed | |||
| | | | Starter | Finisher | ||
| | | Cost | Proportion | Value | Proportion | Value |
| | | | (Kg) | (Rs.) | (Kg) | (Rs.) |
| 1 | Maize | 4.88 | 512.00 | 2498.56 | 573.00 | 2796.24 |
| 2 | Rice Polish | 4.00 | 50.00 | 200.00 | 0.00 | 0.00 |
| 3 | Jowar | 4.19 | 0.00 | 0.00 | 30.00 | 125.70 |
| 4 | Rice Kani | 5.00 | 0.00 | 0.00 | 20.00 | 100.00 |
| 5 | DEO Rice Polish | 3.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 6 | DEO Groundnut cake | 7.90 | 70.00 | 553.00 | 60.00 | 474.00 |
| 7 | DEO Soyabean meal | 8.00 | 280.00 | 2240.00 | 235.00 | 1880.00 |
| 8 | Sunflower meal/extract | 4.02 | 30.00 | 120.60 | 25.00 | 100.50 |
| 9 | Limestone powder | 1.00 | 5.00 | 5.00 | 5.00 | 5.00 |
| 10 | Dicalcium Phosphate | 11.26 | 10.00 | 112.60 | 10.00 | 112.60 |
| 11 | Salt Pure | 4.00 | 4.00 | 16.00 | 4.00 | 16.00 |
| 12 | Poultry Mineral Mixture | 2.00 | 30.00 | 60.00 | 30.00 | 60.00 |
| 13 | Shell Grit/Marble Grit | 1.40 | 0.00 | 0.00 | 0.00 | 0.00 |
| 14 | Vitamin & Probiotics Mix | 30.00 | 7.00 | 210.00 | 6.00 | 180.00 |
| 15 | D.L. Methionine | 180.00 | 1.50 | 270.00 | 1.50 | 270.00 |
| 16 | L.Lysine | 140.00 | 0.50 | 70.00 | 0.50 | 70.00 |
| | Total(Kg) | | 1000.00 | 6355.76 | 1000.00 | 6190.04 |
Statement 2 : Commercial Cattle Feed Formulation
| Sr. No. | Feed Ingredient | Cost (Rs./Kg) | Proportion (Kg) | Value (Rs.) |
| 1 | Deoiled Cakes (cotton seed, sunflower, corngluten, etc.) | 8.00 | 150 | 1200.00 |
| 2 | Cereals (maize, jowar, sorghum broken rice, etc.) | 4.88 | 100 | 488.00 |
| 3 | Deoiled rice bran | 3.00 | 470 | 1410.00 |
| 4 | Tapioca Products | 3.00 | 100 | 300.00 |
| 5 | Salt | 4.00 | 20 | 80.00 |
| 6 | Mineral (bone ash, lime, etc.) | 10.00 | 20 | 200.00 |
| 7 | Molasses | 5.00 | 120 | 600.00 |
| 8 | Urea | 4.00 | 20 | 80.00 |
| | Total | | 1000 | 4358.00 |
| Weighted average cost of raw materials | Cost (Rs./Ton) | Proportion (Ton) | Value (Rs.) |
| Broiler - Starter - Finisher | 6355.76 6190.04 | 0.125 0.125 | 794.47 773.76 |
| Layer - Chick - Grower - Layer | 6115.67 5192.88 5773.52 | 0.050 0.100 0.300 | 305.78 519.29 1732.06 |
| Cattle - Feed | 4358.00 | 0.300 | 1307.40 |
| Total | | 1,000 | 5432.75 |
Statement 3 : Calculation of working capital requirements
(Rs. in lakhs)
(Rs. in lakhs)
| | | | | Year | |||
| Sr. No. | Particulars | Period | Cost (Rs./ton) | 1* | 2 | 3 | 4 |
| 1 | Capacity Utilisation | --- | --- | 70 | 80 | 90 | 100 |
| 2 | Raw materials consumption including wastage (tonnes per day) | | | 70.70 | 80.80 | 90.90 | 101.00 |
| 3 | Raw materials inventory | 45days | 5433 | 172.85 | 197.54 | 224.24 | 246.93 |
| 4 | Work in progress | 1 day | 5937 | 4.20 | 4.80 | 5.40 | 6.00 |
| 5 | Packing material | 30days | 305 | 6.47 | 7.39 | 8.32 | 9.24 |
| 6 | Power and Fuel | 15days | 160 | 1.70 | 1.94 | 2.18 | 2.42 |
| 7 | Finished goods inventory | 7 days | 6193 | 30.65 | 35.03 | 39.41 | 43.79 |
| 8 | Sundry debtors | 7 days | 6908 | 33.85 | 38.68 | 43.52 | 48.36 |
| | Less : Sundry creditors | 7 days | 5433 | 26.62 | 30.42 | 34.23 | 38.03 |
| | Total working captial requirement | | | 223.09 | 254.96 | 286.83 | 318.70 |
| | Margin money on working capital | | | 55.77 | 63.74 | 71.70 | 79.67 |
| | IIncremental margin on working capital | | | | 7.97 | 7.96 | 7.97 |
| | Working capital loan | | | 167.32 | 191.22 | 215.13 | 239.03 |
| | Interest on working capital loan (@18% per annum) | | | 15.06 | 34.42 | 38.72 | 43.03 |
* During first year the plant will be operated for 6 months only
# Including 1% wastage
Statement 4 : Capital cost of the Project
# Including 1% wastage
Statement 4 : Capital cost of the Project
| S.No. | Particulars | Quantity | Specifi- cations | Unit cost | Total cost | |
| | | | | | | Rs.in lakhs |
| 1 | 2 | 3 | 4 | 5 | 6 | |
| | | | | | | |
| 1 | Land | 7 | acres | 50000 | /acre | 3.5 |
| 2 | Land and site development | | | | | |
| i) | Land levelling | 70000 | cuf | 2 | /cuft | 1.4 |
| ii) | Barbed wire fencing | 850 | r.mts. | 150 | /r.mts. | 1.28 |
| iii) | Internal roads | 300000 | Lumpsum | 300000 | Lumpsum | 3 |
| iv) | Gate | 50 | r.mts. | 1000 | r.mts. | 0.5 |
| v) | Security cabin | 30 | Sq.mts. | 3000 | /Sq.mts. | 0.9 |
| | Sub total | | | | | 10.58 |
| | | | | | | |
| 3 | Civil Structures | | | | | |
| i) | Raw material and finished feed godown | 2354 | Sq.mts. | 3500 | /Sq.mts. | 82.39 |
| ii) | Machinery Hall | 250 | Sq.mts. | 7000 | /Sq.mts. | 17.5 |
| iii | Office cum laborratory | 325 | Sq.mts. | 3770 | /Sq.mts. | 12.25 |
| iv) | Generator and switch room | 90 | Sq.mts. | 3000 | /Sq.mts. | 2.7 |
| v) | Canteen and change room | 200 | Sq.mts. | 3230 | /Sq.mts. | 6.46 |
| vi) | Garrage for vehicles | 80 | Sq.mts. | 2150 | /Sq.mts. | 1.72 |
| vii) | Residential quarters | | | | | |
| | a. Manager (one) | | Sq.mts. | 3500 | /Sq.mts. | 2.8 |
| | b. Supervisor (3) | 150 | Sq.mts. | 3200 | /Sq.mts. | 4.8 |
| | c. Labourers (10) | 150 | Sq.mts. | 2000 | /Sq.mts. | 3 |
| viii) | Architect fees | 0.5 | % of civil cum land development costs | | | 0.7 |
| | Sub total | | | | | 134.33 |
| 4 | Plant and Machinery | | | | | |
| i) | Intake and grinding section | 1 | | 733000 | /unit | 7.33 |
| ii) | Mixing section | 1 | | 232000 | /unit | 2.32 |
| iii | Bagging and services | 1 | | 340000 | /unit | 3.4 |
| iv) | Electricals | 1 | | 164000 | /unit | 1.64 |
| v) | Steel strructures | 1 | | 297000 | /unit | 2.97 |
| vi) | Errection and commissioning | Lumpsum | -- | 95000 | Lumpsum | 0.95 |
| vii) | Hopper speed control | Lumpsum | -- | 180000 | Lumpsum | 1.8 |
| | and hopper & misc. equipment | | | | | |
| viii) | Transportation, insurance | Lumpsum | -- | 355000 | Lumpsum | 3.55 |
| | etc. | | | | | |
| ix) | Boiler | 1 | | 310000 | /unit | 3.1 |
| x) | Pellet Mill | 1 | | 1838000 | /unit | 18.38 |
| | Sub total | | | | | 45.44 |
| | | | | | | |
| 5 | Misc. fixed assets | | | | | |
| i) | Lab equipments | Lumpsum | -- | 750000 | Lumpsum | 7.5 |
| ii) | Weighing machine | Lumpsum | -- | 750000 | Lumpsum | 7.5 |
| iii) | Office furniture and computers | Lumpsum | -- | 750000 | Lumpsum | 7.5 |
| | Sub total | | | | | 22.5 |
| | | | | | | |
| 6 | Vehicles | | | | | |
| i) | Jeeps | 2 | No. | 350000 | /unit | 7 |
| ii) | Motor cycles | 2 | No. | 50000 | /unit | 1 |
| | Sub total | | | | | 8 |
| | | | | | | |
| 7 | Electricals | | | | | |
| i) | Generator | 1 | 125 KVA | 500000 | /unit | 5 |
| ii) | Transformer and accessories | Lumpsum | -- | 1500000 | Lumpsum | 15 |
| | and external lighting | | | | | |
| | Sub total | | | | | 20 |
| | | | | | | |
| 8 | Water supply system | Lumpsum | -- | 250000 | Lumpsum | 2.5 |
| | underground water lane | | | | | |
| | well, pump, filteration plant | | | | | |
| | etc. | | | | | |
| | | | | | | |
| 9 | Preliminary and pre-operative | | | | | |
| | expenses | | | | | |
| i) | Company formation expenses | 2.5% of item no.1-8 | | | | 15.21 |
| ii) | Capitalisation of interest | As per statement No. 9 | | | | 0 |
| | | | | | | 15.21 |
| | | | | | | |
| 10 | Margin money on working | 25 % of total working capital requirement | | | | 0 |
| | capital | | | | | |
| | | | | | | |
| | TOTAL PROJECT COST | | | | | 68.21 |
| | | | | | | |
| | MARGIN MONEY | 25 % of the project cost | | | | 17.05 |
| | | | | | | |
| | | | | | | |
| | BANK LOAN | | | | | 51.16 |
| | | | | | | |
| | | | | | | |
Statement 5 : Manpower Requirement
| Sr. No. | Manpower (No.) | Requirement (Per head) | Salary (per month) | Total Salary |
| 1 | Manager | 1 | 8,000 | 8,000 |
| 2 | Accounts Officer | 1 | 5,000 | 5,000 |
| 3 | Maintainance Engineer | 1 | 6,000 | 6,000 |
| 4 | Sales Officer | 1 | 5,000 | 5,000 |
| 5 | Chemists | 2 | 4,000 | 8,000 |
| 6 | Floor supervisors | 3 | 3,000 | 9,000 |
| 7 | Operators | 3 | 3,000 | 9,000 |
| 8 | Stores Supervisor | 1 | 2,500 | 2,500 |
| 9 | Assistant Accountants | 1 | 2,500 | 2,500 |
| 10 | Electrical Supervisor | 1 | 2,500 | 2,500 |
| 11 | Mechanical Supervisor | 1 | 2,500 | 2,500 |
| 12 | Skilled workers | 21 | 2,000 | 42,000 |
| | Total | 37 | --- | 102,000 |
| | Incentives and Perks (30% of the salary) | | | 30,600 |
| | Total monthly payments | | | 132,600 |
Statement 6 : Techno-economic parameters
| S.No. | Particulars | |
| | | |
| | | |
| 1 | Capacity of the plant ( MT / 2shifts ) | 100 |
| | | |
| 2 | No. of operating shifts per day | 2 |
| | (8hrs/shift) | |
| | | |
| 3 | No. of working days in a year | |
| | First year | 150 |
| | Second year | 300 |
| | | |
| 4 | Capacity utilisation (%) | |
| | First year | 70 |
| | Second year | 80 |
| | Third year | 90 |
| | Fourth year | 100 |
| | | |
| 5 | Wastage of raw material (%) | 1.00 |
| | | |
| 6 | Raw material consumption(MT) | |
| | First year | 10605 |
| | Second year | 24240 |
| | Third year | 27270 |
| | Fourth year | 30300 |
| | | |
| 7 | Average cost of Raw materials | 5433 |
| | (Rs. per MT) | |
| | | |
| 8 | Power and fuel | 160 |
| | (Rs. per MT of raw material consumed) | |
| | | |
| 9 | Cost of packing materials | 305 |
| | (Rs. per MT feed manufactured) | |
| | | |
| 10 | Wages (Rs. per MT of feed manufactured) | 39 |
| | | |
| 11 | Factory overheads | 30 |
| | (Rs. lakhs per year) | |
| | | |
| 12 | Repairs and maintainance | 2.40 |
| | (Rs. lakhs per year) | |
| | | |
| 13 | Administrative overheads | 33 |
| | (Rs. lakhs per year) | |
| | | |
| 14 | Selling and distribution overheads | 27 |
| | (Rs. lakhs per year) | |
| | | |
| 15 | Salaries, incentives and perks (Rs. in lakhs/ Month) with 5% increase per year | 1.33 |
| | | |
| | | |
| 16 | Product mix (%) | |
| | Comm. broiler - starter | 12.50 |
| | Comm. broiler - finisher | 12.50 |
| | Commercial Layer - Chick mash | 5.00 |
| | Commercial Layer - Grower mash | 10.00 |
| | Commercial Layer - Layer mash | 30.00 |
| | Cattle Feed | 30.00 |
| | | |
| 17 | Quantity of feed manufactured(MT) | |
| | First year | 10500 |
| | Second year | 24000 |
| | Third year | 27000 |
| | Fourth year | 30000 |
| | | |
| 18 | Sale price of feed (Rs. per MT) | |
| | Comm. broiler - starter(mash) | 8200 |
| | Comm. broiler - finisher(mash) | 8200 |
| | Commercial Layer - Chick mash | 7050 |
| | Commercial Layer - Grower mash | 6500 |
| | Commercial Layer - Layer mash | 6850 |
| | Cattle feed - pellets | 6000 |
| | Weighted average sale price of feed ( Rs. /MT ) | 6908 |
| | | |
| 19 | Sale of Gunny bags(Rs. per bag) | 9.00 |
| | | |
| 20 | No. of gunny bags per ton of raw material | 13.33 |
| | | |
| 21 | Depreciation(WDM) - % : Buildings | 10.00 |
| | Machinery | 25.00 |
| | Vehicles | 33.00 |
| | | |
| 22 | Income tax rate ( % ) | 44.00 |
| | | |
| 23 | Interest rate on term loan (%) | 15.5 |
| | | |
| 24 | Intrerest rate on working capital loan (%) | 18 |
| | | |
| 25 | Repayment period (No. of quarters) | 28 |
| | | |
| 26 | Moratorium(No. of quarters) | 4 |
| | | |
| | | |
Statement 7 : Calculation of depreciation on written down value method
(Rs.in Lakhs)
| | Civil Structures | Depreciation | Plant and Machinery | Depreciation | Misc. Fixed Assets | Depreciation |
| Year | Value at begining | ( @ 10 % per | Value at begining | ( @ 25 % per | Value at begining | ( @ 33 % per |
| | of the year | annum ) | of the year | annum ) | of the year | annum ) |
| | | | | | | |
| 1 | 141.40 | 14.14 | 45.44 | 11.36 | 50.50 | 16.67 |
| 2 | 127.26 | 12.73 | 34.08 | 8.52 | 33.84 | 11.17 |
| 3 | 114.53 | 11.45 | 25.56 | 6.39 | 22.67 | 7.48 |
| 4 | 103.08 | 10.31 | 19.17 | 4.79 | 15.19 | 5.01 |
| 5 | 92.77 | 9.28 | 14.38 | 3.59 | 10.18 | 3.36 |
| 6 | 83.50 | 8.35 | 10.78 | 2.70 | 6.82 | 2.25 |
| 7 | 75.15 | 7.51 | 8.09 | 2.02 | 4.57 | 1.51 |
| 8 | 67.63 | 6.76 | 6.07 | 1.52 | 3.06 | 1.01 |
| 9 | 60.87 | 6.09 | 4.55 | 1.14 | 2.05 | 0.68 |
| 10 | 54.78 | 5.48 | 3.41 | 0.85 | 1.37 | 0.45 |
| 11 | 49.30 | 4.93 | 2.56 | 0.64 | 0.92 | 0.30 |
| | | | | | | |
Statement 8 : Income and expenditure and tax liability
| | | I | II | III | IV | V | VI | VII | VIII | IX | X |
| I | Expenditure: | | | | | | | | | | |
| 1 | Cost of raw materail | 576.17 | 1316.96 | 1481.58 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 |
| 2 | Power and fuel | 16.97 | 38.78 | 43.63 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 |
| 3 | Packing material | 32.02 | 73.20 | 82.35 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 |
| 4 | Wages | 4.09 | 9.36 | 10.53 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 |
| 5 | Factory over heads | 15.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 |
| 6 | Repairs and maintenance | 1.20 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 |
| 7 | Adm. over heads | 16.50 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 |
| 8 | Selling and distribution cost | 13.50 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 |
| 9 | Salaries | 7.96 | 16.71 | 17.54 | 18.42 | 19.34 | 20.31 | 21.32 | 22.39 | 23.51 | 24.68 |
| 10 | Interest on working capital | 15.06 | 34.42 | 38.72 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 |
| | | | | | | | | | | | |
| | Total expenditure | 698.47 | 1581.83 | 1766.76 | 1951.72 | 1952.65 | 1953.61 | 1954.63 | 1955.69 | 1956.81 | 1957.99 |
| II | Income: | | | | | | | | | | |
| 1 | Sale of feed | | 1657.92 | 1865.16 | 2072.40 | 2072.40 | 2072.40 | 2072.40 | 2072.40 | 2072.40 | 2072.40 |
| 2 | Sale of gunny bags | 12.72 | 29.08 | 32.72 | 36.35 | 36.35 | 36.35 | 36.35 | 36.35 | 36.35 | 36.35 |
| | | | | | | | | | | | |
| | Total income | 738.06 | 1687.00 | 1897.88 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 |
| | | | | | | | | | | | |
| III | Gross operational income | 39.59 | 105.17 | 131.12 | 157.03 | 156.10 | 155.14 | 154.12 | 153.06 | 151.94 | 150.76 |
| IV | Depriciation on | | | | | | | | | | |
| | i) Civil structures | 14.14 | 12.73 | 11.45 | 10.31 | 9.28 | 8.35 | 7.51 | 6.76 | 6.09 | 5.48 |
| | ii) Plant and machinery | 11.36 | 8.52 | 6.39 | 4.79 | 3.59 | 2.70 | 2.02 | 1.52 | 1.14 | 0.85 |
| | iii) Misc. fixed assests | 16.67 | 11.17 | 7.48 | 5.01 | 3.36 | 2.25 | 1.51 | 1.01 | 0.68 | 0.45 |
| | | | | | | | | | | | |
| | Total depriciation | 42.17 | 32.41 | 25.32 | 20.11 | 16.23 | 13.30 | 11.04 | 9.29 | 7.90 | 6.78 |
| V | Interest on term loan | 0.00 | 34.26 | 28.17 | 22.08 | 15.99 | 9.90 | 3.81 | 0.00 | 0.00 | 0.00 |
| | | | | | | | | | | | |
| VI | Income after Depri. and | -29.98 | 38.50 | 77.63 | 114.84 | 123.89 | 131.95 | 139.27 | 143.77 | 144.04 | 143.98 |
| | interest | | | | | | | | | | |
| | | | | | | | | | | | |
| VII | Income tax | 0.00 | 16.94 | 34.16 | 50.53 | 54.51 | 58.06 | 61.28 | 63.26 | 63.38 | 63.35 |
| VIII | DSCR Calculation | | | | | | | | | | |
| | Profit After Tax (PAT) | -29.98 | 21.56 | 43.47 | 64.31 | 69.38 | 73.89 | 77.99 | 80.51 | 80.66 | 80.63 |
| | Add: Depriciation | 42.17 | 32.41 | 25.32 | 20.11 | 16.23 | 13.30 | 11.04 | 9.29 | 7.90 | 6.78 |
| | Interest on term loan | 27.40 | 34.26 | 28.17 | 22.08 | 15.99 | 9.90 | 3.81 | 0.00 | 0.00 | 0.00 |
| | | | | | | | | | | | |
| | Surplus available for repayment | 39.59 | 88.23 | 96.96 | 106.50 | 101.59 | 97.08 | 92.84 | 89.80 | 88.56 | 87.41 |
| | Debt to be serviced | | | | | | | | | | |
| | Repayment of T/L instalments | 0.00 | 39.29 | 39.29 | 39.29 | 39.29 | 39.29 | 39.29 | 0.00 | 0.00 | 0.00 |
| | Interest on Term Loan | 27.40 | 34.26 | 28.17 | 22.08 | 15.99 | 9.90 | 3.81 | 0.00 | 0.00 | 0.00 |
| | Total | 27.40 | 73.55 | 67.46 | 61.37 | 55.28 | 49.19 | 43.10 | 0.00 | 0.00 | 0.00 |
| | | | | | | | | | | | |
| | Debt Service Coverage Ratio | 1.44 | 1.20 | 1.44 | 1.74 | 1.84 | 1.97 | 2.15 | 0.00 | 0.00 | 0.00 |
| | Value* | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 0.00 | 0.00 | 0.00 |
| | Average DSCR | 1.68 | | | | | | | | | |
*The value is a notional figure to arrive at Average DSCR through computerised formula for any number of years i.e upto 10 years
| Statement 9 | |||||||
| Repayment schedule | | | | | |||
| | | | | | | (Rs. in lakhs) | |
| | | | | | | | |
| | | | | | | Instalment: | 9.82 |
| | | | | | | | |
| Quarter | O/S at the begining of the qtr. | Recovery of principal | Recovery of principal in the year | Recovery of interest | Recovery of interest in the year | Total recovery in the qtr | Total recovery in the year |
| 1* | 58.94 | 0.00 | | 2.28 | | 2.28 | |
| 2* | 176.81 | 0.00 | | 6.85 | | 6.85 | |
| 3 | 235.74 | 0.00 | | 9.13 | | 9.13 | |
| 4 | 235.74 | 0.00 | 0.00 | 9.13 | 27.40 | 9.13 | 27.40 |
| 5 | 235.74 | 9.82 | | 9.13 | | 18.96 | |
| 6 | 225.92 | 9.82 | | 8.75 | | 18.58 | |
| 7 | 216.10 | 9.82 | | 8.37 | | 18.20 | |
| 8 | 206.27 | 9.82 | 39.29 | 7.99 | 34.26 | 17.82 | 73.55 |
| 9 | 196.45 | 9.82 | | 7.61 | | 17.43 | |
| 10 | 186.63 | 9.82 | | 7.23 | | 17.05 | |
| 11 | 176.81 | 9.82 | | 6.85 | | 16.67 | |
| 12 | 166.98 | 9.82 | 39.29 | 6.47 | 28.17 | 16.29 | 67.46 |
| 13 | 157.16 | 9.82 | | 6.09 | | 15.91 | |
| 14 | 147.34 | 9.82 | | 5.71 | | 15.53 | |
| 15 | 137.52 | 9.82 | | 5.33 | | 15.15 | |
| 16 | 127.69 | 9.82 | 39.29 | 4.95 | 22.08 | 14.77 | 61.37 |
| 17 | 117.87 | 9.82 | | 4.57 | | 14.39 | |
| 18 | 108.05 | 9.82 | | 4.19 | | 14.01 | |
| 19 | 98.23 | 9.82 | | 3.81 | | 13.63 | |
| 20 | 88.40 | 9.82 | 39.29 | 3.43 | 15.99 | 13.25 | 55.28 |
| 21 | 78.58 | 9.82 | | 3.04 | | 12.87 | |
| 22 | 68.76 | 9.82 | | 2.66 | | 12.49 | |
| 23 | 58.94 | 9.82 | | 2.28 | | 12.11 | |
| 24 | 49.11 | 9.82 | 39.29 | 1.90 | 9.90 | 11.73 | 49.19 |
| 25 | 39.29 | 9.82 | | 1.52 | | 11.34 | |
| 26 | 29.47 | 9.82 | | 1.14 | | 10.96 | |
| 27 | 19.65 | 9.82 | | 0.76 | | 10.58 | |
| 28 | 9.82 | 9.82 | 39.29 | 0.38 | 3.81 | 10.20 | 43.10 |
| | | | | | | | |
| * During first and second quarters the average balance is taken into consideration as the loan will be disbursed in a phased manner | |||||||
Statement 10 : Cash flow analysis of the feed plant project
(Rs. in Lakhs)
| | Particulars | Year | |||||||||
| | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| | | | | | | | | | | | |
| I | Costs | | | | | | | | | | |
| | | | | | | | | | | | |
| 1 | Capital Cost | 314.32 | | | | | | | | | |
| | | | | | | | | | | | |
| 2 | Cost of Production | | | | | | | | | | |
| | | | | | | | | | | | |
| i | Cost of raw materail | 576.17 | 1316.96 | 1481.58 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 |
| ii | Power and fuel | 16.97 | 38.78 | 43.63 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 |
| iii | Packing material | 32.02 | 73.20 | 82.35 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 |
| iv | Wages | 4.09 | 9.36 | 10.53 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 |
| v | Factory over heads | 15.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 |
| vi | Repairs and maintenance | 1.20 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 |
| vii | Adm. over heads | 16.50 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 |
| viii | Selling and distribution cost | 13.50 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 |
| ix | Salaries | 7.96 | 16.71 | 17.54 | 18.42 | 19.34 | 20.31 | 21.32 | 22.39 | 23.51 | 24.68 |
| x | Interest on working capital loan | 15.06 | 34.42 | 38.72 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 |
| xi | Income tax | 0.00 | 16.94 | 34.16 | 50.53 | 54.51 | 58.06 | 61.28 | 63.26 | 63.38 | 63.35 |
| | | | | | | | | | | | |
| | Total cost | 1012.80 | 1598.77 | 1800.91 | 2002.25 | 2007.16 | 2011.67 | 2015.91 | 2018.95 | 2020.19 | 2021.34 |
| | | | | | | | | | | | |
| II | Benefits | | | | | | | | | | |
| | | | | | | | | | | | |
| 1 | Sale of feed | 725.34 | 1657.92 | 1865.16 | 2072.40 | 2072.40 | 2072.40 | 2072.40 | 2072.40 | 2072.40 | 2072.40 |
| 2 | Sale of gunny bags | 12.72 | 29.08 | 32.72 | 36.35 | 36.35 | 36.35 | 36.35 | 36.35 | 36.35 | 36.35 |
| 3 | Depriciated value of assets | | | | | | | | | | 52.78 |
| | | | | | | | | | | | |
| | Total benefits | 738.06 | 1687.00 | 1897.88 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2161.53 |
| | | | | | | | | | | | |
| | Discounted factor @15% | 0.87 | 0.76 | 0.66 | 0.57 | 0.50 | 0.43 | 0.38 | 0.33 | 0.28 | 0.25 |
| | Discounted costs @15% | 880.69 | 1208.90 | 1184.13 | 1144.80 | 997.91 | 869.70 | 757.85 | 660.00 | 574.26 | 499.64 |
| | Discounted benefits @15% | 641.79 | 1275.62 | 1247.88 | 1205.68 | 1048.42 | 911.67 | 792.76 | 689.35 | 599.44 | 534.30 |
| | | | | | | | | | | | |
| | NPW | 169.03 | | | | | | | | | |
| | | | | | | | | | | | |
| | BCR | 1.02 | | | | | | | | | |
| | | | | | | | | | | | |
| | Discount factor @ 30 % | 0.77 | 0.59 | 0.46 | 0.35 | 0.27 | 0.21 | 0.16 | 0.12 | 0.09 | 0.07 |
| | Net benefits | -274.73 | 88.23 | 96.96 | 106.50 | 101.59 | 97.08 | 92.84 | 89.80 | 88.56 | 140.19 |
| | Discounted net benefits @30% | -211.33 | 52.21 | 44.13 | 37.29 | 27.36 | 20.11 | 14.80 | 11.01 | 8.35 | 10.17 |
| | | Total discounted net benefits at 30% | = | 14.10 | | | | | | ||
| | Discount factor @ 35% | 0.74 | 0.55 | 0.41 | 0.30 | 0.22 | 0.17 | 0.12 | 0.09 | 0.07 | 0.05 |
| | Net benefits | -274.73 | 88.23 | 96.96 | 106.50 | 101.59 | 97.08 | 92.84 | 89.80 | 88.56 | 140.19 |
| | Discounted net benefits @35% | -203.51 | 48.41 | 39.41 | 32.06 | 22.66 | 16.04 | 11.36 | 8.14 | 5.95 | 6.97 |
| | | Total discounted net benefits at 35% | = | -12.51 | | | | | | ||
| | | | | | | | | | | | |
| | IRR | 32.65 | % | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Statement 11 : Break Even Analysis
(Rs. Lakhs)
| | | I | II | III | IV | V | VI | VII | VIII | IX | X |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| I | Sales income | 738.06 | 1687.00 | 1897.88 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 | 2108.75 |
| | | | | | | | | | | | |
| II | Variable costs | | | | | | | | | | |
| 1 | Cost of raw materail | 576.17 | 1316.96 | 1481.58 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 | 1646.20 |
| 2 | Power and fuel | 16.97 | 38.78 | 43.63 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 | 48.48 |
| 3 | Packing material | 32.02 | 73.20 | 82.35 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 | 91.50 |
| 4 | Wages | 4.09 | 9.36 | 10.53 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 | 11.70 |
| 5 | Interest on working capital | 15.06 | 34.42 | 38.72 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 | 43.02 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | Total variable costs | 644.32 | 1472.72 | 1656.81 | 1840.90 | 1840.90 | 1840.90 | 1840.90 | 1840.90 | 1840.90 | 1840.90 |
| | | | | | | | | | | | |
| III | Fixed costs | | | | | | | | | | |
| | | | | | | | | | | | |
| 1 | Factory over heads | 15.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 | 30.00 |
| 2 | Repairs and maintenance | 1.20 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 |
| 3 | Adm. over heads | 16.50 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 | 33.00 |
| 4 | Selling and distribution cost | 13.50 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 | 27.00 |
| 5 | Salaries | 7.96 | 16.71 | 17.54 | 18.42 | 19.34 | 20.31 | 21.32 | 22.39 | 23.51 | 24.68 |
| 6 | Interest on term loan | 27.41 | 34.26 | 28.17 | 22.08 | 15.99 | 9.90 | 3.81 | 0.00 | 0.00 | 0.00 |
| 7 | Depreciation | 42.16 | 32.41 | 25.32 | 20.11 | 16.23 | 13.30 | 11.04 | 9.29 | 7.90 | 6.79 |
| | | | | | | | | | | | |
| | Total fixed costs | 123.73 | 175.78 | 163.43 | 153.01 | 143.96 | 135.90 | 128.57 | 124.08 | 123.81 | 123.87 |
| | | | | | | | | | | | |
| | Contribution | 93.75 | 214.28 | 241.06 | 267.85 | 267.85 | 267.85 | 267.85 | 267.85 | 267.85 | 267.85 |
| | | | | | | | | | | | |
| | BEP - % Capacity utilisation | 92.39 | 65.63 | 61.02 | 57.13 | 53.75 | 50.74 | 48.00 | 46.33 | 46.22 | 46.25 |
| | | | | | | | | | | | |
Contribution = Sales icome - total variable costs
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